Bitcoin’s market dynamics are showing a significant shift as long-term holders (LTH) reduce their selling pressure. Despite recent volatility pushing BTC to $93,000, on-chain data suggests growing confidence among veteran investors.
Market Sentiment Shift
CryptoQuant analyst Axel Adler Jr. has identified a notable change in investor behavior. Long-term Bitcoin holders have cut their selling activity by over 60%. Daily BTC sales have dropped from 80,000 to 40,000 coins.
This reduction in selling pressure carries significant implications. LTH behavior often predicts market trends. Their current stance suggests strong conviction in Bitcoin’s future value.
Technical Analysis and Price Targets
Technical indicators point to a potential bullish reversal. A Falling Wedge pattern has formed on the daily timeframe. This pattern typically signals an upcoming price increase.
Key price levels to watch:
- Current support: $93,000
- Next resistance: $106,000
- Major sell target: $120,000
Analysts expect BTC to reclaim $106,000 once it breaks out of the Falling Wedge. The $120,000 level marks a crucial point where LTHs might resume selling, having secured 500% profits.
Market Implications
The reduced selling pressure from long-term holders creates a favorable environment for price growth. New buyers face less resistance entering the market. This dynamic could accelerate Bitcoin’s path to new all-time highs.
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The current market structure suggests a potential trend reversal. Reduced selling pressure combined with technical patterns points to upcoming positive price action.
Tags: Bitcoin, Long-term holders, Market Analysis, Technical Analysis, Cryptocurrency
Source: Bitcoinist